Correlation Between Yihai International and Lerøy Seafood
Can any of the company-specific risk be diversified away by investing in both Yihai International and Lerøy Seafood at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Yihai International and Lerøy Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yihai International Holding and Lery Seafood Group, you can compare the effects of market volatilities on Yihai International and Lerøy Seafood and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Yihai International with a short position of Lerøy Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yihai International and Lerøy Seafood.
Diversification Opportunities for Yihai International and Lerøy Seafood
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yihai and Lerøy is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Yihai International Holding and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood Group and Yihai International is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Yihai International Holding are associated (or correlated) with Lerøy Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of Yihai International i.e., Yihai International and Lerøy Seafood go up and down completely randomly.
Pair Corralation between Yihai International and Lerøy Seafood
Assuming the 90 days horizon Yihai International is expected to generate 2.45 times less return on investment than Lerøy Seafood. But when comparing it to its historical volatility, Yihai International Holding is 1.55 times less risky than Lerøy Seafood. It trades about 0.04 of its potential returns per unit of risk. Lery Seafood Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 94.00 in Lery Seafood Group on September 12, 2024 and sell it today you would earn a total of 347.00 from holding Lery Seafood Group or generate 369.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yihai International Holding vs. Lery Seafood Group
Performance |
| Timeline |
| Yihai International |
| Lery Seafood Group |
Yihai International and Lerøy Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yihai International and Lerøy Seafood
The main advantage of trading using opposite Yihai International and Lerøy Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yihai International position performs unexpectedly, Lerøy Seafood can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lerøy Seafood will offset losses from the drop in Lerøy Seafood's long position.| Yihai International vs. Hormel Foods | Yihai International vs. Superior Plus Corp | Yihai International vs. SIVERS SEMICONDUCTORS AB | Yihai International vs. NorAm Drilling AS |
| Lerøy Seafood vs. Mowi ASA | Lerøy Seafood vs. LEROY SEAFOOD GRUNSPADR | Lerøy Seafood vs. Yihai International Holding | Lerøy Seafood vs. Lery Seafood Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |